M&A Spotlight: CEE / Wolf Theiss Corporate Monitor

19.01.2018

Welcome to the newest edition of the WOLF THEISS Corporate Monitor’s M&A Spotlight on Central and Eastern Europe ("CEE"), which we are proud to release in cooperation with Mergermarket, a leading intelligence and news service for mergers and acquisitions across the globe.

150 senior-level executives were asked to share their experiences and outlook on M&A in the CEE/SEE region. The study found that 62% of respondents cited TMT as one of the top two industries to watch out for in 2018, followed by consumer and leisure (44%) and pharma, medical and biotech (32%).

Other findings include:

TMT sub-sectors seen as particularly promising are e-commerce, fintech, and data and analytics, each cited by 31% of respondents as among the top two most-appealing areas for investment. Cloud technology was not far behind, acknowledged by 30% of respondents.

The dynamism of emerging companies in the CEE tech sector is also prominent, with some start-ups citing growth of up to 200% a year. Indeed, 53% of survey respondents said that they were interested in acquiring or investing in a start-up in the region over the coming year.

Austria tops the table as the most-favourable market for M&A in the region, followed by the Czech Republic and Poland. Dealmaking within emerging markets Bulgaria and Romania is picking up pace, with the countries ranking fourth and fifth, respectively.

The US is expected to be the largest single source of inbound acquisitions, cited by 29% of respondents, followed by European powerhouse Germany (22%). The UK comes in third in the expectation that its looming break from the EU will encourage British investors to diversify their portfolios into the growing markets of CEE.